cse
Plastic
- Joined
- Sep 1, 2005
- Location
- Arizona, USA
Hello All,
I have a small CNC manufacturing business that I’m ready to move on from and have a potential buyer. Now I need to figure out what to ask for it. It was primarily a job shop for quite a few years and we dabbled in some retail parts for a hobby I enjoy. In 2017 we dropped all job shop work and focused on retail. I don’t think the business is worth enough to justify engaging a business broker, and I already have an interested buyer. I’ve seen a couple threads here on PM about valuing a job shop, but I couldn’t find anything regarding a retail-manufacturing business. I’ve put together a prospectus and have looked at it using Asset-Based and Cash-Flow valuations. Cash-Flow is going to yield a larger dollar value, but I see multipliers for manufacturing businesses anywhere from 2-14. This is a small 1.5 person shop that will need to be moved, so we are obviously on the lower end of the multiplier range, but where?
Can anyone recommend a resource that provides a valuation service? Or a good resource for determining a multiplier? Or am I off base and should just hire a business broker?
It’s a probably painfully obvious I’ve never done this before, so any advice would be appreciated,
Jim
I have a small CNC manufacturing business that I’m ready to move on from and have a potential buyer. Now I need to figure out what to ask for it. It was primarily a job shop for quite a few years and we dabbled in some retail parts for a hobby I enjoy. In 2017 we dropped all job shop work and focused on retail. I don’t think the business is worth enough to justify engaging a business broker, and I already have an interested buyer. I’ve seen a couple threads here on PM about valuing a job shop, but I couldn’t find anything regarding a retail-manufacturing business. I’ve put together a prospectus and have looked at it using Asset-Based and Cash-Flow valuations. Cash-Flow is going to yield a larger dollar value, but I see multipliers for manufacturing businesses anywhere from 2-14. This is a small 1.5 person shop that will need to be moved, so we are obviously on the lower end of the multiplier range, but where?
Can anyone recommend a resource that provides a valuation service? Or a good resource for determining a multiplier? Or am I off base and should just hire a business broker?
It’s a probably painfully obvious I’ve never done this before, so any advice would be appreciated,
Jim